Negotiating skills are something that you can’t survive without in this industry. But who are the people you shouldn’t try to negotiate with? Is there a subtle way to market yourself to home sellers? How do you kick start negotiations with expired listings? In this episode, we answer questions on how to become a better negotiator.
We can say pretty firmly that 1 to 2% of the purchase price is at stake during the negotiation phase. -Matt Johnson.
Three Things We Learned
Don’t waste your time with sellers who overestimate the value of their home
There are some sellers out there that can’t be convinced that their home is worth less than their estimate, no matter how many market reports you show them.
Many agents hope that after the demand is increased and the price of the home will go up, the home will be easier to sell. Unfortunately, these type of sellers keep an eye on the market again and if the prices go up, they will overestimate their home once again.
Share your marketing plan
Give them a peek into what you do to sell homes. If you are a good writer, make a brochure with some surprising or little-known ways you can sell a house. This way, you don’t push your services but you give them a taste of what the whole process looks like.
How to approach expired listings and for sale by owner
The best way to approach expired listings and FSBOs is to go to their house and bringing information of value. It could be a report about the current state of the market, an estimate regarding the repairs that can be done, etc. The idea behind this to show that you are there to help them out, not necessarily to take the listing.
A poor negotiator can’t survive in the real estate world, where everything is based on interactions between sellers and buyers. The agent is in between it all and has to make sure both sides don’t compromise too much, so much so that they would lose interest in the deal. Even a slowed down process can cause the loss of large amounts of money. As an agent you have to be persuasive enough to convince buyer to make the move now. Otherwise, the homeowner may have another mortgage payment to make next week.